Informatica 8-K Results of Operations and Financial Condition

Exhibit 99.1

Contacts:	Deborah Wiltshire	Stephanie Wakefield
	Public Relations	Director, Investor Relations
	650-862-8186	650-385-5261
	dwiltshire@informatica.com	swakefield@informatica.com

INFORMATICA REPORTS RECORD 2006 REVENUES OF $325 MILLION WITH 21
PERCENT ANNUAL GROWTH
Achieves record quarterly revenue and operating income

REDWOOD CITY, Calif., January 25, 2007 — Informatica Corporation (NASDAQ: INFA), a leading provider of data integration software, today announced financial results for the fourth quarter and the year ended December 31, 2006.

     Revenues for the fourth quarter of 2006 were $91.8 million, up 15 percent from the $79.8 million recorded in the fourth quarter of 2005. License revenues for the fourth quarter were $42.9 million, up 10 percent from the $39.0 million recorded in the fourth quarter of 2005. Net income for the fourth quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $13.9 million or $0.15 per diluted share, versus net income of $13.6 million or $0.14 per diluted share in the fourth quarter of 2005. Results for the fourth quarter of 2006 reflect the impact of share-based compensation as required by Financial Accounting Standards (FAS) 123R, whereas 2005 results exclude these expenses. Non-GAAP net income for the fourth quarter of 2006 was $18.6 million or $0.20 per diluted share, up over 25 percent from $14.7 million or $0.16 per diluted share in the fourth quarter of 2005. Non-GAAP net income excludes charges related to purchased in-process research and development, share-based compensation, facilities restructurings, and the amortization of acquired technology and intangible assets. A reconciliation of GAAP results to non-GAAP results is included below.

     For the year ended December 31, 2006, revenues were $324.6 million, up 21 percent from $267.4 million recorded in 2005. License revenues for the year 2006 were $146.1 million, up 22 percent from $120.2 million for the year 2005. GAAP net income for the year ended December 31, 2006 was $36.2 million or $0.39 per diluted share, versus $33.8 million or $0.37 per diluted share for the year ended December 31, 2005. Results for 2006 reflect the impact of share-based compensation as required by Financial Accounting Standards (FAS) 123R, whereas

2005 results exclude these expenses. Non-GAAP net income for the year 2006 was $57.7 million or $0.62 per diluted share, up over 44 percent from $39.3 million or $0.43 per diluted share for the year 2005.

     “Guided by our singular mission, we achieved record financial results and gained market share in both the data integration and data quality categories,” said Sohaib Abbasi, chairman and CEO of Informatica. “The combination of the highest ever customer demand and most competitive products, positions us strongly to realize the substantial growth opportunity in the data integration market.”

Significant milestones achieved since October 2006 include:

• Signed repeat business with 257 customers.Customers continue to derive considerable value from their investments in Informatica solutions. Repeat customers included AEGON Nederland NV, Bank of America, Barclays Global Investors, California State Automobile Association, CEMEX, Honeywell, IBM Corporation, Linkshare, Manulife Financial, Philips International, Seagate Technology, and Shoppers Drug Mart.

• Added 91 new customers.Informatica increased its customer base this quarter to 2,749 companies including 59 new Informatica customers and 32 customers added through the Itemfield acquisition. New customers include Alliant Techsystems, BankUnited Financial, Chinatrust Commercial Bank, Danske Bank A/S, Kellogg, Brown & Root, Ministero della Giustizia Italiana, NetWork for Electronic Transfers, Pepco Energy Services, Rollins Inc., and Wendy’s International.

• Acquired Itemfield, a leading data transformation vendor.Itemfield’s technology enables near-universal access to unstructured and semi-structured data. The acquisition further extends Informatica’s leadership in enterprise data integration with additional cross-enterprise data exchange technology. Industry-specific, data exchange formats supported include SWIFT, NACHA, ACORD, RosettaNet, HIPAA and HL7.

• Announced latest releases of data quality products.Informatica Data Quality 3.1 and Informatica Data Explorer 5.0. were made generally available in November 2006, delivering enhanced value for customers looking to implement best-in-class data

	quality processes. These include simple yet powerful business-oriented user interfaces; new capabilities that increase user and developer productivity; and end-to-end integration with the Informatica PowerCenter data integration platform, enabling data profiling and cleansing to become integral components of the overall data integration lifecycle.
•	Informatica extends global education services reach.Informatica, NIIT, Softtek and Visionary Integration Professionals entered into new product training partnerships in India, Latin America and U.S. to deliver hands-on training for Informatica data integration products. In teaming with local companies in key geographies, Informatica is making it easier and more cost-effective for customers and systems integrators to leverage expert data integration instruction.
•	Recognized as a “Leader” in first DI tools Magic Quadrant.Informatica is the only independent data integration software company positioned on the completeness of vision and ability to execute axes in the “leaders” quadrant. The positioning reflects the market response to Informatica’s singular focus on data integration, consistent track record of innovation that genuinely benefits customers, and commitment to a positive customer service and support experience.

Conference Call and Webcast

Informatica will be discussing its fourth quarter and annual 2006 results on a conference call today beginning at 2:00 p.m. PDT. A live Webcast of the conference call will be available at http://www.informatica.com/investor. A replay of the call will also be available by dialing 617-801-6888, reservation number 54718905.

About Informatica

Informatica Corporation (NASDAQ: INFA) is a leading provider of enterprise data integration software and services. Using Informatica products, companies gain greater business value by integrating all their information assets. More than 2,700 companies worldwide rely on Informatica to reduce the cost and expedite the time to address data integration needs of any complexity and scale. For more information, call 650-385-5000 (1-800-653-3871 in the U.S.), or visit www.informatica.com.

INFORMATICA CORPORATION
GAAP TO NON-GAAP RESULTS
(in thousands, except per share data and percentages)
(unaudited)

	Three Months Ended					Years Ended
	December 31,					December 31,
	2006			2005		2006		2005
GAAP Net income	$	13,925		$	13,553	$	36,206	$	33,804
Plus:
Amortization of acquired technology		573			226		2,118		922
Amortization of intangible assets		199			47		653		188
Facilities restructuring charges		(174	)		781		3,212		3,683
Purchased in-process research and development		—			—		1,340		—
Share-based payment compensation		4,123			49		14,138		723
Non-GAAP Net income	$	18,646		$	14,656	$	57,667	$	39,320

	Three Months Ended				Years Ended
	December 31,				December 31,
	2006		2005		2006		2005
Diluted net income per share:
Diluted GAAP Net income per share	$	0.15	$	0.14	$	0.39	$	0.37
Plus:
Amortization of acquired technology		0.01		0.01		0.02		0.01
Amortization of intangible assets		—		—		0.01		—
Facilities restructuring charges		—		0.01		0.04		0.04
Purchased in-process research and development		—		—		0.01		—
Share-based payments		0.04		—		0.15		0.01
Diluted Non-GAAP Net income per share	$	0.20	$	0.16	$	0.62	$	0.43
Shares used in computing diluted GAAP Net income per share		103,176		94,163		92,942		92,083
Shares used in computing diluted Non-GAAP Net income per share		103,692		94,163		93,679		92,083

Non-GAAP Financial Information

     To supplement the company’s condensed consolidated financial statements presented on a GAAP basis, Informatica uses non-GAAP financial measures of net income and net income per share. These measures are adjusted to exclude the charges and expenses discussed above. The company believes the disclosure of such non-GAAP financial measures is appropriate to enhance an overall understanding of its historical financial performance. These adjustments to the company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the company’s underlying operational results, trends, and marketplace performance. Informatica believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with its historical financial results, as well as

comparability to similar companies in the company’s industry, many of which present similar non-GAAP financial measures to investors. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for its planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with GAAP in the U.S.

Safe Harbor

This press release contains forward-looking statements relating to our opportunity for growth in the data integration market, potential impact of our acquisition of Itemfield and efforts being conducted with strategic training partners. Such statements involve risks and uncertainties, and actual results may differ materially from the results described in this press release. The potential risks and uncertainties that could cause actual results to differ include, among others, risks related to (1) competition with larger companies that have longer operating histories and greater financial, technical, marketing, and other resources; (2) uncertainty in the state of IT spending and the continued growth in the market for data integration solutions in general; (3) successful integration of Itemfield’s technology and its employees into Informatica; and (4) lack of control regarding our strategic partners’ devotion of adequate resources to promote, sell, implement, and support our products, as well as those risks and uncertainties included under the caption “Risk Factors” in Informatica’s report on Form 10-Q for the quarter ended September 30, 2006, which is on file with the SEC and is available on the company’s investor relations website athttp://www.informatica.com/. All information provided in this release is as of January 25, 2007, and Informatica undertakes no duty to update this information.

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Note: Informatica, Informatica Data Quality, Informatica Data Explorer and PowerCenter are registered trademarks of Informatica Corporation in the United States and in jurisdictions throughout the world. All other company and product names may be trade names or trademarks of their respective owners.

INFORMATICA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended						Years Ended
	December 31,						December 31,
	2006			2005			2006		2005
Revenues:
License	$	42,859		$	38,955		$	146,092	$	120,182
Service		48,942			40,883			178,506		147,249
Total revenues		91,801			79,838			324,598		267,431
Cost of revenues:
License		3,164			1,758			6,978		4,465
Service		16,056			13,385			58,402		46,801
Amortization of acquired technology		573			226			2,118		922
Total cost of revenues		19,793			15,369			67,498		52,188
Gross profit		72,008			64,469			257,100		215,243
Operating expenses:
Research and development		13,928			11,101			54,997		42,585
Sales and marketing		38,061			36,072			138,851		118,770
General and administrative		7,612			5,337			28,187		20,583
Amortization of intangible assets		199			47			653		188
Facilities restructuring charges		(174	)		781			3,212		3,683
Purchased in-process research and development		—			—			1,340		—
Total operating expenses		59,626			53,338			227,240		185,809
Income from operations		12,382			11,131			29,860		29,434
Interest income and other, net		3,183			2,029			11,823		6,544
Income before income taxes		15,565			13,160			41,683		35,978
Income tax provision (benefit)		1,640			(393	)		5,477		2,174
Net income	$	13,925		$	13,553		$	36,206	$	33,804
Basic net income per common share	$	0.16		$	0.15		$	0.42	$	0.39
Diluted net income per common share (1)	$	0.15		$	0.14		$	0.39	$	0.37
Shares used in computing basic net income per common share		86,168			87,651			86,420		87,242
Shares used in computing diluted net income per common share		103,176			94,163			92,942		92,083

(1) Diluted EPS is calculated under the “if converted” method for the three months ended December 31, 2006. This includes an add-back of $1,749 in interest and issuance cost amortization, net of income taxes.

INFORMATICA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

	December 31,
	2006		2005
Assets
Current assets:
Cash and cash equivalents	$	120,491	$	76,545
Short-term investments		280,149		185,649
Accounts receivable, net of allowances of $1,666 in 2006 and $1,094 in 2005		65,407		50,533
Prepaid expenses and other current assets		10,424		9,342
Total current assets		476,471		322,069
Restricted cash		12,016		12,166
Property and equipment, net		14,368		21,026
Goodwill and intangible assets, net		187,317		85,229
Other assets		6,593		532
Total assets	$	696,765	$	441,022
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and other current liabilities	$	62,400	$	45,844
Accrued facilities restructuring charges		18,758		18,718
Deferred revenues		85,364		69,748
Total current liabilities		166,522		134,310
Convertible senior notes		230,000		—
Accrued facilities restructuring charges, less current portion		65,052		75,815
Deferred revenues, less current portion		7,035		8,167
Deferred tax liability, non-current		993		—
Stockholders’ equity		227,163		222,730
Total liabilities and stockholders’ equity	$	696,765	$	441,022

INFORMATICA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

	Years Ended
	December 31,
	2006			2005
Operating activities:
Net income	$	36,206			$	33,804
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,104				9,198
Share-based payment compensation expense and amortization of stock-based compensation		14,138				723
Amortization of intangible assets and acquired technology		3,605				1,144
Impairment of property and equipment		2,668				—
Allowance (recovery) for doubtful accounts and sales returns allowances		(32	)			350
Purchased in-process research and development		1,340				—
Non-cash facilities restructuring charges		3,212				3,683
Changes in operating assets and liabilities:
Accounts receivable		(11,434	)			(8,348	)
Prepaid expenses and other assets		(172	)			(3,596	)
Accounts payable and accrued liabilities		997				(2,571	)
Accrued compensation and related expenses		4,328				4,769
Income taxes payable		1,624				1,606
Deferred tax liability		993				—
Accrued facilities restructuring charges		(13,772	)			(18,299	)
Deferred revenues		13,098				15,472
Net cash provided by operating activities		66,903				37,935
Investing activities:
Purchases of property and equipment		(3,767	)			(9,913	)
Purchases of investments		(462,367	)			(227,132	)
Maturities of investments		249,624				104,586
Sales of investments		118,802				89,000
Acquisitions, net of cash acquired		(95,763	)			—
Net cash used in investing activities		(193,471	)			(43,459	)
Financing activities:
Proceeds from issuance of common stock		23,837				21,503
Repurchases and retirement of common stock		(78,541	)			(26,500	)
Issuance of convertible senior notes		230,000				—
Payment of issuance costs on convertible senior notes		(6,242	)			—
Net cash provided by (used in) financing activities		169,054				(4,997	)
Effect of foreign exchange rate changes on cash and cash equivalents		1,460				(1,875	)
Net increase (decrease) in cash and cash equivalents		43,946				(12,396	)
Cash and cash equivalents at beginning of the year		76,545				88,941
Cash and cash equivalents at end of the year	$	120,491			$	76,545